BAKU, Azerbaijan, June 24. Azerbaijan is considering revising insurance coverage limits for a number of mandatory insurance types, said Vusal Gurbanov, Director General of the Central Bank of Azerbaijan, speaking at the International Insurance Forum in Baku, Trend’s correspondent reports from the event.
According to him, the issue of adjusting coverage limits for mandatory personal accident insurance is being reviewed within the framework of a developing concept.
“We are studying international best practices and considering reflecting this issue in the concept. Certain amendments are also being considered in the legislation on compulsory motor third-party liability insurance,” Gurbanov said.
He recalled that the current compensation limit for property damage stands at 5,000 manats.
“This amount is automatically reinstated. In other words, after compensation of up to 5,000 manats is paid for damage to third-party property, the insured sum is not exhausted but is automatically restored to 5,000 manats,” he said.
He noted that this mechanism differs from most other types of insurance.
“In other insurance types, after a payout is made, the insured amount is reduced by the compensation paid. In this case, a different principle applies,” he added.
